A small town is considering two potential alternatives for a garbage collection system. Thefollowing cost data has been compiled. If the interest rate is 6%, Compute the AB /AC ratio.YearSystem ASystem B0-$250,000-$375,0001-3020,00032,0003040,00050,000O 1.341.090.96○ 2.27

The objective of the question is to calculate the AB/AC ratio for two potential alternatives for a…

Answered: A small town is considering two…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A fabrication company engaged in production with a capacity of 150, 000 pieces per year. But, it is just operating at 70% of its full capacity. The company has an annual income of P 250, 000.00, annual fixed cost are P 50, 000.00 and variable costs are P 1.00 per unit. How many productions of parts must be produced for break-even point? Given: Required: Solution: refer to this textbook: https://drive.google.com/file/d/1h4ra80IE8IRtYyja16iK6TtjCrTDi73j/view?usp=sharing
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A cost analysis is to be made to determine what, if anything, should be done in a situation offering three alternatives in addition to doing nothing. Costs and benefits of the alternatives are estimated as follows: Alternative Cost Uniform Annual Benefit Residual Value Useful life (years) A 450,000 150,000 0 4 B 550,000 125,000 300,000 4 с 800,000 135,000 250,000 8 Use an 8-year analysis period, "stacking" projects as necessary. Use Excel to choose which, if any, of the projects should be chosen: MÁRR is 15%. a. Using annual worth analysis b. Using rate of return analysis
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Graph on right, shows AW of costs versus number of service years of project X. Based on the graph, economic service life of the project is Larger costs Total AW of costs AW of AOC Capital recovery 3.5 10 Years О 3.5 years O 10 years O 1 year О З уears AW of costs, S/year
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12:42 PM 74 Coal 4 to 9 Natural gas Wind 4 to 10.5 8.6 4.8 to 9.1 8.2 4.5 to 15.5 8.8 Solar National average cost of electricity to residential custom- ers: 11e/kWh 46% utilizes coal and natural gas as the primary fuel source. What about the ethical aspects of the govemment's allow- ance for these plants to continue polluting the atmosphere with the emissions that may cause health problems for citizens and further the effects of global warming? What types of regulations, if any, should be developed for PEC (and other generators) to follow in the future? 3. You developed an interest in the LEC relation and the publicized cost of electricity of 10.27e/kWh for this year. You wonder if the addition of 60 MW of wind-sourced electricity will make any difference in the LEC value for this next year. You did learn the following: This is year 11 for LEC computation purposes 1-25 years i=5% per year Case Study E-5.052 billion kWh 57 LEC last year was 10.22 e/kWh (last year's breakeven cost to…
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A flood control pumping station is being designed. Three possible pumping scheme are proposed and the relevant costs are shown in Table Q 2 What is the most economical range of pumping times in hours'year for each scheme? Figure Q2 shows the frequency of pumping demand. What is the most economical scheme? The cost of capital may be taken as 20%. Table Q 2 Costs of alternative scheme Scheme A в Cost of pumps (RM) Life (years) 120,000 180,000 230,000 15 15 20 5, 000 220,000 5, 500 200 ,000 5, 500 Maintenance per annum (RM) Cost of pipes (RM) Life (years) Cost of pumping (RM/hour) 150, 000 20 20 20 50 80 80 10% 30% 40% 20% 1000 2000 3000 4000 5000 Annual pumping hours Frequency of pumping
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Question 5 Cost data of a machine is shown in the following table with an annual rate of 12%. Calculate annual worth at end of year 2. M&O cost Retention Yr. Market Value per year O (First Cost) 55,000 35,000 45.000 20,000 47,500 3 15,000 50,000 2,000 53,500 O 63,256 O 69.289 O 68,476 O 67,854 Question 6 Use same cost data from last question and 12% annual rate of return. Calculate annual worth at end of Year 3. O 65,765 O 64,332 O 67,428 O 66.256 Question 7 Use the same cost data of the machine from the above 2 questions and 12% interest rate per year. What is the ESL of this machine? O 1 O 2 O 3 O 4

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A small town is considering two potential alternatives for a garbage collection system. The following cost data has been compiled. If the interest rate is 6%, Compute the AB /AC ratio. Year System A System B 0 -$250,000 -$375,000 1-30 20,000 32,000 30 40,000 50,000 O 1.34 1.09 0.96 ○ 2.27